New Renewable Energy Units May Require 10% Power Storage for Two Hours

Key Takeaways

The Central Electricity Authority mandates energy storage of at least two hours and 10% of installed capacity for new solar and wind projects.
Plants commissioned from July 2027 must implement co-located storage, improving the predictability of power generation.
The new regulation aims to enhance power dispatchability, thereby potentially increasing project revenues despite higher initial costs.

New Regulations for Renewable Energy Storage

The Central Electricity Authority (CEA) has introduced guidelines requiring new solar and wind energy projects to incorporate storage solutions. These measures aim to ensure reliable, firm power supply by mandating energy storage for a minimum duration of two hours, equating to at least 10% of the project’s installed capacity.

According to a draft amendment to the Central Electricity Authority’s regulations, renewable energy plants that are commissioned starting July 2027 must implement co-located energy storage. For example, a 100 MW solar installation would be required to have a minimum of 10 MW of energy storage that can supply power for two hours. Stakeholders are invited to submit feedback on these proposed changes by October 4.

Sujoy Ghosh, vice president and country managing director of First Solar in India, noted that while the capital expenditure for renewable energy developers will increase, the predictability in power dispatch that these projects offer could enhance overall revenue generation.

In the previous year, the CEA released an advisory encouraging the integration of energy storage with solar projects to improve their operational reliability. The latest proposal makes such storage a regulatory requirement, marking a significant step toward fostering dependable energy generation.

Many utilities, along with commercial and industrial consumers, have already been investing in green energy projects that incorporate storage solutions, demonstrating a growing trend to enhance electricity reliability. Additionally, the proposed guidelines stipulate that starting July 1, 2029, the storage duration requirement will be raised, further emphasizing the need for efficient power management.

This move underscores the ongoing commitment to revolutionizing India’s energy landscape through improved standards for renewable energy integration and operational reliability.

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